Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 ( 8 points ) You are thinking of opening a copy shop. It costs $ 8 0 0 0 to rent a copier

Question 2(8 points)
You are thinking of opening a copy shop. It costs $8000 to rent a copier for a year. It
costs $0.05 per copy to operate the copier. Other fixed costs of running the store
amount to $900 per month. You charge an average of $0.17 per copy. You are open
365 days per year. Each copier can make up to 150,000 copies per year.
a. Using Excel, construct a two-way profit table (number of copiers on the left
running top to bottom and daily demand on the top running from left to right) for 1 to 5
copiers rented and daily demands of 1000,1500,2000, and 2500 copies per day. That
is, compute annual profit for each of these combinations of copiers rented and daily
demand.
b. Given that you rent three copiers, what daily demand for copies will allow you to
break even? Draw a break-even graph to show this break-even relationship.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

16th Edition

0357517571, 978-0357517574

More Books

Students also viewed these Finance questions

Question

What functions might this behavior be serving?

Answered: 1 week ago

Question

What are the goals?

Answered: 1 week ago

Question

Are there other relevant characteristics about your key public?

Answered: 1 week ago

Question

What information remains to be obtained?

Answered: 1 week ago